Many industries are being hit hard by the recession, with record numbers of companies going into administration and liquidation. However, there are ways to improve your chances of surviving the downturn by reducing costs, effectively managing cash flow and investing in marketing.

Managing staffing levels and costs

It is important to ensure all unneccessary overtime is stopped and that staff are working as efficiently as possible. If you need to reduce wage costs look at job sharing or moving people from full-time to part-time instead of making someone redundant. if you do need to make redundancies make sure you speak to a professional HR advisor as there are strict guidelines to follow.

Marketing

During the last recession in the late 80s and early 90s the businesses that maintained or increased their marketing budget, came out of the recession the strongest across all sectors. It is important to remember that there are enough customers for your business to be successful but not enough customers for every business to be successful. You need to make sure the customer chooses your business over the competition.

Reducing Overheads

We know that Reid Hamilton always takes care to present the most competitive terms for their clients before inviting renewal, but what about your other suppliers? Savings can often be made to energy and other costs by shopping around.

Managing cash flow

At all times, but especially in times of recession, businesses need to have cash flow projections to 
ensure they can survive the forthcoming months and year ahead. it is a bit of a cliché but "cash" 
really is king. A business can survive loss-making periods but it cannot survive without cash. Cash 
flow forecasts will show if there is a need to increase overdraft 
facilities or look at refinancing. Every business, without exception, 
should make sure that they know their break-even point.
            

Help is at hand - FREE OF CHARGE

Moore and Smalley is an award-winning provider of accountancy and business advisory services to commercial and private clients, the firm has 6 offices in the North West. We are currently offering free recession proof visits to businesses across the region. For more information please contact Judith Dugdale ACA BSc, Associate Director, Moore and Smalley LLP on 01524 62801 or email judith.dugdale@mooreandsmalley.co.uk.